The Revenue Mobilisation and Fiscal Allocation Commission (RMAFC) has disclosed that Nigeria is currently not benefitting from existing Joint Venture Contracts (JVCs) as the country is currently losing $14.235 billion annually in revenue from the contracts.
Mr. Shettima Aba-Gana, the acting Chairman of RMAFC, who said this at an oil summit in Abuja, noted that the federation earns between 55 per cent and 60 per cent share of all JVCs operated by NNPC, while companies under Production Sharing Contracts contribute between 15 per cent and 20 per cent to the Federation Account.
He said the federation has not benefited significantly from the respective JVCs due to continuous decline in crude oil production, arising from pipeline vandalism, asset integrity issues and general low investment in JV crude production over time.
“Currently, JV crude oil production dropped from 1.8 million barrels per day to between 700,000 and 900,000 bpd leading to loss of revenue of about $14.235 billion annually,”he said.
Abba-Gana noted that PSC was introduced in 1993 and had not been reviewed ever since, explaining that the review was expected when oil prices reached $20 per barrel or 15 years of production, which was 2008, whichever came first. fffffffffffff